We see that questions are being raised about the legality of the UK blocking low value consignment relief (LVCR) only on goods entering the UK from the Channel Islands. 

The point at issue here is one of fiscal neutrality – now a common area of challenge in VAT cases and one that was at the core of the recently released ECJ Rank case.  Rank was successful in arguing that there must be a level playing field from a VAT perspective with respect to (in this case) gaming machines with similar functionality. 

The argument from the Channel Islands is that the UK is not being fiscally neutral in making imports from the Channel Islands more costly than those from other non EU locations.   For more on this please contact Julie Park on 01962 735350